Court Upholds FCC Order in Video Franchise Fight, TIA Applauds

06/30/2008

The U.S. Sixth Circuit Court of Appeals’ decided Friday to uphold a controversial FCC video franchising order. The decision is expected to draw applause, from the Telecommunications Industry Association and opposition from municipalities.

The landmark order, adopted in December 2006, lets those seeking video franchises to acquire them in a streamlined manner, forcing them to be issued within 90 days of filing. It’s credited with speeding the deployment and availability of telco TV services such as AT&T Inc.’s U-verse and Verizon Communications Inc.’s FiOS.

However, groups representing municipal execs and local regulatory units challenged the FCC order, seeking to retain control of the process.

But the TIA says the FCC order is for the greater good.

"Across the country, consumers want more video and broadband choices and communications providers are ready to upgrade their networks for new applications and services," said TIA President Grant Seiffert, in prepared comments. "We are pleased by the court’s affirmation of the FCC’s decision to elevate competition in the broadband market by limiting unnecessary regulatory delays at the local level. It is the consumer who stands to benefit most, as more competition will pave the way for more broadband services and lower prices."

The TIA wants a uniform local franchise process “because unreasonable delay and build-out requirements create barriers to market entry that discourages investment, innovation and competition.”

TIA represents the information and communications technology industry, and its members represent the entire telecommunications supply chain, from infrastructure provider to device makers including top executives from ADTRAN, Alcatel-Lucent, Cisco Systems, Corning Incorporated, Ericsson, Inc., Intel Corp., Motorola, Tellabs and Qualcomm.

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